A Powys company has merged with a rival in England under a Japanese name in a deal which could create new jobs.

Traltec, of Welshpool, TP Moulding Ltd of Telford, Shropshire, which both make car parts, have become Shimizu UK Ltd.

Traltec was set up almost 10 years ago by its Japanese parent company Shimizu Industry with an initial staff of 10, which has risen to 165.

The new company will retain the sites in Welshpool and Telford along with its total of 303 employees.

By merging the two companies we will have a stronger, more competitive organisation

Sue Pallett

Both T P Moulding and Traltec - which is based at the Buttington Cross Business Park - supply air conditioning and radiator parts to Denso Manufacturing UK Ltd in Telford and Denso Marston in Shipley, Yorkshire.

Sue Pallett, spokeswoman for both companies, said: "We anticipate that everyone will be really pleased at this positive move.

"By merging the two companies we will have a stronger, more competitive organisation. Everyone at both sites is excited and supportive toward this huge challenge."

She added: "It is very important to both companies that we retain all members of staff.

"Telford and Welshpool sites are fortunate to have secured very loyal and committed employees and we want to keep it that way.

"Provided the merger is successful, we could even see further recruitment being necessary as business is streamlined, increasing our joint capacity."

Over the past year or so, a number of firms involved in the motor industry in Powys have announced redundancies or have threatened to make job losses.

The latest is J L French, from Presteigne. In February, the firm put nearly 170 jobs in jeopardy when it went into administration after its US parent company announced restructuring plans.